(Bloomberg) China’s tech and consumer earnings stood out in an otherwise disappointing results season, emerging as pockets of resilience that can help equity markets turn a corner as stimulus measures kick in.Most Read from BloombergTesla’s $41,000 Model X Discount Unlocks Subsidies Musk Wanted GoneSaola Departs Hong Kong After Bringing Destructive WindsTesla Refreshes Model 3 and Slashes Prices of Top-End CarsSingapore Votes for President in Test of Ruling Party’s SwayPutin Moves to Seize Co
(Bloomberg) China’s largest tech companies Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have gained $66 billion in market value since May’s end, propelled by expectations of a gradual return to pre-crackdown growth and a litany of official promises to unshackle the private sector. Yet some investors warn the celebration may be premature.Most Read from BloombergEveryone Wants to Work at UPS After Teamsters DealWeWork Tumbles After Raising ‘Substantial Doubt’ About FutureUS Bank Shares
An equal-weighted custom index of India’s five flagship Internet stocks including Paytm parent One 97 Communications Ltd. and Zomato Ltd. has risen more than 20% in 2023, bolstered by the firms’ focus on profitability and a buzzing economy.
India s consumer technology stocks, including One 97 Communications and Zomato, have outperformed their Chinese counterparts this year, rising more than 20% as of September 2023. The strong performance was supported by the firms focus on profitability and India s economic growth potential. Meanwhile, China s tech giants have seen a lacklustre performance as share prices remain below January levels, due to geopolitical and regulatory risks. With India s growth potential and favourable ties with the West, investors are turning to Indian companies despite their smaller market cap and revenue compared with China s tech firms.
By Ashutosh Joshi India’s consumer technology stocks are on a tear this year, handsomely beating their larger rivals in China and widening the divergence between two of the world’s largest equity markets.